Binance Defies China’s Ban, Facilitating $90 Billion in Trades: Report
Binance, the world’s largest cryptocurrency exchange, has reportedly facilitated cryptocurrency-related asset trades worth a staggering $90 billion in China over a single month. The Wall Street Journal revealed this information, citing internal figures and accounts from both current and former employees of the exchange. Notably, cryptocurrency trading has been illegal in China since 2021, making this revelation all the more astonishing. According to the report, the transactions in China accounted for a significant 20% of Binance’s global trading volume.
Binance has deep roots in China, where it was founded in 2017. The exchange represented mainland China until regulatory restrictions forced it to relocate its operations. Despite this move, China has remained the largest market for the exchange, followed by South Korea, Turkey, Vietnam, and the British Virgin Islands, as per documents examined by the Wall Street Journal. The exchange’s activities in China have not gone unnoticed by regulators, both in the United States and China. The Commodity Futures Trading Commission (CFTC) sued Binance, alleging it operated an “illegal” exchange and had a deceptive compliance program. Meanwhile, the Securities and Exchange Commission (SEC) sued the exchange and its CEO, Changpeng Zhao, accusing them of inflating trading volumes, diverting customer funds, misleading investors, and failing to restrict U.S. customers from using the platform.
